RJR Nabisco Holdings Capital Corp.--1991 (292-129)

Tufano, Peter (1992) RJR Nabisco Holdings Capital Corp.--1991 (292-129). [Case]

Abstract

An investment manager notices a large apparent discrepancy in the prices of two nearly-identical bonds issued in conjunction with a major leveraged buyout. The manager must figure out whether the instruments are mispriced relative to one another, and if so, how to capture arbitrage profits from the temporary anomaly. The case introduces students to a wide variety of instruments ranging from very simple treasury strips to P-I-K debentures. Encourages students to devise "arbitrage" positions and understand the degree to which these positions are riskless.

Item Type: Case
Keywords: finance, accounting, financial management
Subject(s): Finance
Date Deposited: 01 Apr 2016 12:38
Last Modified: 01 Apr 2016 12:38
Funders: n/a
URI: http://eureka.sbs.ox.ac.uk/id/eprint/6060

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